French wines and spirits group Pernod Ricard reported a forecast-beating rise in full year profits and said it would split its shares as it predicted another strong year of growth.
In a statement on Thursday, the maker of Martell cognac and Chivas Regal whisky said net profit in the year to June 30 rose 30 percent to 831 million euros ($1.16 billion), topping analysts' consensus forecast from Reuters Estimates of 805 million euros.
Operating profit rose 21 percent to 1.45 billion euros, in line with the consensus, while underlying net earnings rose 24 percent at constant exchange rates to 833 million, compared with initial guidance from the company of a rise of about 20 percent. Chairman Patrick Ricard said in a statement that Pernod's business had got off to a good start in July and August, and predicted further strong growth in sales and operating profit.
The group would not be more precise until its November 7 annual meeting amid uncertainty over the wider impact of the crisis in credit markets, said Managing Director Pierre Pringuet. "We have not sensed any change in the economy. But I think it would be imprudent today to say there is not going to be one," Pringuet told Reuters in a telephone interview.
Pernod said it would keep its dividend unchanged at 2.52 euros a share, representing an effective rise of 20 percent when taking into account bonus shares issued in January. It will also propose giving shareholders in January 2008 one additional share for every one they hold.
Pernod shares showed little reaction to the results. At 0820 GMT the shares were 1 percent lower at 154.22 euros, slightly underperforming the wider DJ Stoxx European food and beverage index. Pringuet reaffirmed Pernod's interest in acquiring Absolut vodka maker Vin & Sprit, which is being put up for sale by the Swedish government, and said talks were continuing with Russian authorities about acquiring full rights to Stolichnaya vodka.
"For multiple reasons, be they financial or commercial, we don't aim to have both (Absolut and Stolichnaya) brands in our portfolio," Pringuet said. Rivals Diageo, Fortune Brands and privately-owned Bacardi have also expressed interest in buying Absolut, which analysts forecast could be worth $6 billion.